Alliance Bank Malaysia has adopted a new asset and liability management (ALM) system from analytics provider SAS.
The move aims to improve risk oversight, meet regulatory requirements and boost operational efficiency.
The SAS platform allows the bank to conduct daily liquidity and interest rate risk assessments, run stress scenarios and make quicker decisions using predictive analytics.
The upgrade supports Alliance Bank’s compliance with Bank Negara Malaysia’s risk and liquidity guidelines.
It comes amid heightened industry scrutiny, following a series of global bank failures since 2023, most of which were linked to liquidity risk.
Since implementation, the bank has automated 90% of its ALM processes, reducing manual work and improving productivity.
The system also strengthens the bank’s ability to track depositor concentrations and manage liquidity based on immediate funding needs.
The initiative is part of Alliance Bank’s four-year Acceler8 transformation plan launched in 2023, aimed at modernising systems, unifying data, and integrating risk and finance functions.
The bank reported a tenfold improvement in scalability and uptime, over 10% in savings across operational and manpower costs, and faster turnaround for risk assessments which is now completed in less than a day.
These improvements are expected to deliver annual savings of more than US$220,000.
“Despite compliance being the primary driver for this transition, this transformative leap in ALM management has armed us with superior visibility into interest rates and liquidity.
The project further contributed towards our company’s Acceler8 strategy to drive efficiencies, growth and stakeholder value as we focus on providing fast, convenient and personalised solutions to our customers.”
said Kunalan Pecheadavar, Senior Vice President and Head of Group Market Risk at Alliance Bank.
“Due to complex challenges in the industry, ALM processes must come with a high degree of granularity and transparency. The SAS approach provides a comprehensive package of analytical, computational and governance capabilities, delivering a broader balance sheet management process that integrates the whole spectrum of risk dimensions.
SAS’ expertise in integrated risk solutions is demonstrated in how we are able to support banks to achieve business efficiencies, streamline operations and better comply with local regulations.”
said Wilson Yap, Director and Head of Risk Banking Solutions in Asia at SAS.
Featured image: Edited by Fintech News Malaysia, based on image by thanyakij-12 via Freepik
